Federal law versus state

The federal electronic signature law won't override any state laws on electronic transactions provided the state law is “substantially similar” to the federal law or the state has adopted the Uniform Electronic Transactions Act (UETA). This ensures that electronic contracts and electronic signatures will be valid in all states, regardless of where the parties live or where the contract is executed.

Do you want paper or electronic?

If you prefer paper, the law provides a means for you to opt out of using electronic contracts. An online company must provide a notice indicating whether paper contracts are available and informing you that if you give your consent to use electronic documents, you can later change your mind. If you withdraw consent to use electronic contracts, the notice must explain what fees or penalties might apply if the company must use paper agreements for the transaction. 4) ………

Prior to obtaining your consent, the business must also provide a statement outlining the hardware and software requirements to read and save the business's electronic documents. If the hardware or software requirements change while you have a contractual relationship with the business, the business must notify you of the change and give you the option to revoke your consent to using electronic documents.

Although the e-signature law doesn't force consumers to accept electronic documents from businesses, it poses a potential disadvantage for low-tech citizens by allowing businesses to collect additional fees from those who opt for paper.

Consumer concerns

5) ……… The law establishes only that electronic signatures in all their forms qualify as signatures in the legal sense, and leaves it up to software companies and the free market to establish which electronic signature methods will be used.

Since electronic-signature technology is still evolving, many kinds of e-signatures offer little, if any, security. If a consumer uses an insecure signature method, identity thieves could intercept it online and use it for fraudulent purposes. It is expected that secure methods of electronic signatures will be adopted and become as commonplace as credit cards. However, stolen electronic signatures have the potential to become as widespread a problem for e-commerce as credit-card scams and stolen passwords. Consumer-protection groups suggest caution before signing anything online.

Exercise 10. Read the text again and answer these questions.

a) What is the difference between a digital signature and an electronic signature?

b) What is the most important result of the new law?

c) Why do business-to-business websites welcome the new law?

d) What does the new law stipulate concerning the use of paper contracts?

e) According to the law, which kinds of electronic signatures are to be regarded as legal signatures?

Exercise 11. Read through the text once more, noting the advantages of the new law and any (possible) disadvantages that could arise as a result of the new legislation.

LANGUAGE FOCUS

Exercise 12.Vocabulary: distinguishing meaning.Which word in each group is the odd one out? You may need to consult a dictionary to distinguish the differences in meaning.

a) agreement franchise covenant contract

b) should in the event if whereas

c) consent authorisation injunction permission

d) withdraw breach cancel rescind

e) deleted taken out unwarranted removed

f) contention proposition proposal suggestion

g) valid efficacious enforceable in effect

Exercise 13.Collocations: complete the table below using these verbs, which all collocate with the noun contract.

Amend execute sign

Date: 2015-12-24; view: 928